Alternative resi sectors are only set to grow

At Kosy Living, we specialise in these ‘alternative’ sectors. We offer institutional funders and private investors an opportunity to invest in one development company that specialises in co-living, student accommodation, build-to-rent (BTR) and later-living.

We may refer to these sectors as ‘alternative’ but in reality, these sectors are becoming more ingrained in the UK market and will continue to do so.

The co-living sector appeals to the ever-growing generation rent market. This living style specifically attracts young professionals who would like to live in a space where they can benefit from additional amenities such as rooftop terraces, cinema rooms, fitness suites, dining room facilities and more.

Moreover, all their bills are included in one monthly payment, making the product much more affordable. The format is a win-win for all – tenants have their needs addressed while investors draw in higher yields.

At Kosy Living, we offer institutional funders and private investors an opportunity to invest in one development company that specialises in later-living, student accommodation, co-living or BTR

The co-living sector is booming, and while it has been reported that some models have been less successful, it is important to highlight the difference between an operating and development company. We ensure our product is developed to the highest standards, which is beneficial for all parties.

Countries including New Zealand, Australia and the US have been leading the world in this sector and are far ahead of us, currently. In the UK, we are still at under 10% maturity in the sector, which gives an idea of the growth potential.

Student living sector

We have seen the same interest in the student living sector. Student accommodation has often been reported as being a very safe and secure investment, and there is good reason for this.

Confidence in the purpose-built student accommodation (PBSA) sector has definitely returned in 2022, with Knight Frank reporting more than 30,000 student beds were completed last year – more than double the 14,000 beds completed in 2020. These numbers will continue to grow as accepted university applications from outside the EU are up 3% year on year.

The UK has been a world-leader in this sector. Other countries have quickly followed suit and replicated our successful models. The PBSA market has matured very much recently and will continue to do so. The next step is to tap into less saturated markets and bring much-needed accommodation and facilities to students across the UK.

The later-living sector is also booming. Kosy Life, our later-living brand, will soon be coming to East Grinstead in West Sussex and Oxshott in Surrey. This marks the first of five developments we have secured across the South East, which combined will total more than 360 units – rising to 1,000 units by summer 2023.

We are focusing on the rental model rather than the traditional buy-to-sell model. Not only is the BTR later-living model more affordable, it is also hugely undersupplied. The current build-to-sell model is not always fit for purpose. Looking at the later-life age cycle – when someone is ready to downsize and enjoy their retirement – many would prefer paying rent with all bills included without the worry of ground rent and other living costs.

At Kosy Life, we offer to build a community of like-minded people, offering amenities and events that will suit this particular age demographic. The style is similar to our co-living model, which appeals to young professionals, but we have adapted this for a more mature audience.

The sectors we focus on will continue to grow because they serve all. Whether tenants are looking to downsize or save up to get on to the housing ladder, they all have the same things in common; they all want to live in a community-focused building with good-quality amenities, such as wellbeing and fitness suites, social areas that are second to none and to be part of a growing movement for all.

Expansion plans

Kosy is looking to continue expanding in these sectors. For co-living and student accommodation, we are continuing to seek sites in all major UK cities. This allows students to move from their student

living locations to co-living locations and allows cities to retain their graduates rather than have them moving away, typically to London. We believe this approach should be part of the government’s levelling-up strategy.

For later-living, we are seeking locations across the UK, including in smaller towns with good access to local amenities rather than just the community facilities that Kosy Life will also provide.

Kosy Living’s approach is to work alongside our development team, which consists of planning consultants, architects and specialist consultants, so that we can achieve a positive planning decision every time within each sector.

We combine off-market land acquisition, legal, architectural and site development talents of each individual within the company. This ensures that each planning application is taken forward with the utmost confidence of a positive outcome every time; and the buildings that we develop are constructed to the highest quality.

We anticipate that the alternative residential sector will experience huge growth for generations to come. It is transforming – and will continue to transform – the wider residential property sector for the better.